The full contract, page by page.

TERRY'S FURNITURE — BUY HERE PAY HERE, IN-HOUSE FINANCING

Account Number: BHPH-0000 (Sample) Contract Date: September 12, 2026

Buyer: Sample Customer

Merchandise: Sample 7-Piece Living Room Set

This Agreement is a retail installment sale contract and security agreement made under the laws of the State of Alabama, including the Alabama Mini-Code (Ala. Code § 5-19-1 et seq.) and the Alabama Uniform Commercial Code. It is NOT a rental-purchase (rent-to-own) agreement, and it is NOT a lease. Every payment you make under this Agreement is applied toward your ownership of the Merchandise, and ownership passes to you automatically when you pay in full.

READ EVERY PAGE CAREFULLY BEFORE YOU INITIAL AND SIGN. This is a legally binding contract that creates a security interest in the Merchandise you are buying, gives Terry's Furniture specific rights if you do not pay (including the right to repossess the Merchandise as described in Pages 13 and 14), and contains an arbitration agreement and class action waiver on Page 18 that limits your right to go to court. Do not sign anything you do not understand.

You will initial the bottom of each KEY page and sign at the end. Keep a copy of this contract for your records — you may request a paper copy at any time at no charge, or receive this contract by email. If you would like more time to read it, ask. If you do not understand any part of this contract, ask a manager before signing. Terry's Furniture will not rush you.

FEDERAL NOTICE TO BUYER: Do not sign this contract before you read it or if it contains any blank spaces. You are entitled to a copy of this contract at the time you sign it. The federal Truth in Lending disclosures for this transaction, including the annual percentage rate (APR), are provided with this contract.

LANGUAGE NOTICE: If this contract was orally explained to you in a language other than English, you may request a translation before signing. You may also take this contract home to review before you sign, and you may have any person of your choosing review it with you.

SELLER / CREDITOR: Terry's Furniture ("Terry's," "we," "us," "Seller," or "Creditor"), its successors and assigns, doing business in the State of Alabama, with its principal place of business at the store location printed on your receipt and delivery ticket.

BUYER / CUSTOMER: Sample Customer

Home Address (Delivery Address — the only address where the Merchandise may be kept, see Page 11): 123 Main St, Montgomery, AL 36104

Phone: — Email: —

Date of Birth: 1990-01-01 Social Security Number: 123-45-6789

Driver License / State ID No. —

Employer: Sample Employer — Sample Job Title

Buyer represents and warrants that all information given on this contract and on the credit application — including name, address, date of birth, Social Security number, driver license number, employer, income, and references — is true, complete, and accurate.

FALSE INFORMATION: Providing false or misleading information voids this Agreement at Terry's option, constitutes grounds for immediate default under Page 13, and may constitute criminal fraud under Alabama law (Ala. Code § 13A-9-1 et seq.). Terry's relied on this information in deciding to extend financing without a traditional credit check.

IDENTITY VERIFICATION: Terry's photographed or copied Buyer's driver license or state ID, and proof of Buyer's residence address, as part of the application. Those images are retained on the account and are incorporated into this Agreement by reference.

In this Agreement, the following capitalized terms have the meanings given below. These definitions apply everywhere the capitalized term appears in this contract, and the defined terms are used consistently throughout so that Buyer can follow each clause.

"Merchandise" means the furniture or appliance(s) described on Page 4, together with all replacements, accessories, attachments, accessions, and proceeds (including insurance proceeds), and any other goods Terry's delivers under this Agreement.

"Cash Price" means the price of the Merchandise before taxes and before any add-on charges, as shown on Page 5.

"Down Payment" means the amount Buyer pays Terry's today, before delivery, as shown on Page 6.

"Amount Financed" means the Cash Price plus the 8% Miscellaneous Fee and taxes, plus any Protection Plan fee and extra protection fees, minus the Down Payment, as shown on Page 7.

"Add-On Interest" means the finance charge computed on the Amount Financed at the rate stated on Page 7, added to the Amount Financed at the start of the contract.

"Total of Payments" means the Amount Financed plus the Add-On Interest — the full amount Buyer agrees to pay over the term.

"Payment Due Date" means each date on which a scheduled payment is due under the Payment Schedule on Page 8, beginning with the First Payment Due date.

"Grace Period" means the 5 days after a Payment Due Date during which no late charge accrues.

"Late Charge" means the per-day charge of $15.00 described on Pages 8 and 23.

"Same-As-Cash Period" means the first 90 days after the Contract Date, during which Buyer may pay the Same-As-Cash payoff shown on Page 9 and owe no interest and no Miscellaneous Fee, as described on Page 9.

"Protection Plan" means the optional service plan described on Page 10, if any. "Extra Protections" means the optional add-ons described on Page 10, if any.

"Delivery Address" means the home address listed on Page 2.

"Default" means any of the events described on Page 13.

Buyer purchases from Terry's the following Merchandise: Sample 7-Piece Living Room Set.

CONDITION: The Merchandise is sold in the condition displayed and inspected by Buyer at the store (new, floor model, or used, as applicable). Buyer inspected the Merchandise (or the display model of it) before signing and accepts it in its present condition. Any manufacturer warranties that exist pass through to Buyer at delivery; Terry's assigns to Buyer, to the extent permitted, all assignable manufacturer warranties.

DELIVERY: Terry's will deliver the Merchandise to the Delivery Address. Buyer (or an adult member of Buyer's household authorized by Buyer) must be present at delivery. Buyer accepts the Merchandise at delivery, and Buyer's signature on the delivery ticket confirms receipt of the correct Merchandise in good condition.

DAMAGE REPORTS: Any visible damage, missing pieces, or wrong items must be reported to Terry's within 48 hours of delivery. Damage reported after 48 hours is presumed to have occurred after delivery and is Buyer's responsibility.

ONE-WEEK RETURN WINDOW & DAMAGE RESPONSIBILITY: Buyer has seven (7) days from the delivery date to inspect the Merchandise and return it to Terry's Furniture if Buyer finds any damage or defect Buyer does not accept. If the Merchandise is not returned within that one-week period, Buyer accepts full responsibility for any damage to the Merchandise, however caused, and Terry's is not obligated to repair, replace, or credit any damage reported after the one-week window closes.

DELAYS: Terry's is not responsible for delivery delays caused by manufacturer backorder, carrier failure, weather, or other events beyond Terry's reasonable control. If delivery is delayed more than 10 days for reasons within Terry's control, Buyer may cancel and receive a full refund of the Down Payment.

ASSEMBLY, STAIRS & REMOVAL: Assembly, carry up stairs, or removal of old furniture, if quoted, are reflected in the Cash Price or noted on the delivery ticket. If access is impossible (blocked entryways, unsafe conditions, no one home, locked gate), the delivery attempt may be rescheduled and a return-trip charge may apply.

SETUP: Buyer is responsible for having a clear path and adequate space for the Merchandise, for electrical outlets where appliances require them, and for any municipal code requirements at the Delivery Address.

The itemized cost of this purchase, disclosed before signing, is as follows:

Cash Price of Merchandise: $1,200.00

Alabama State Sales Tax (9%): $108.00

Federal Excise Tax (4%): $48.00

Miscellaneous Fee (8% of the Cash Price): $0.00

Total Cash Price with Fees & Taxes: $1,356.00

Buyer acknowledges these prices were disclosed before signing, that they match the itemized disclosure sheet Buyer received, and that no additional charges have been added except those itemized in this contract — specifically, the Down Payment (Page 6), the Protection Plan fee and any Extra Protection fees (Page 10), the Add-On Interest (Page 7), and the Late Charges and returned-payment charges described on Pages 8 and 23.

PRICE CHANGES: The amounts on this page are fixed when Buyer signs. Terry's will not raise the Cash Price, taxes, or payment amounts after signing. Any future purchase or add-on merchandise requires a NEW written agreement signed by both parties.

If Buyer believes any amount on this page is incorrect, Buyer should not sign this contract until the store manager has reviewed and corrected the figures.

Buyer is paying the following Down Payment TODAY, before delivery: $250.00.

Buyer acknowledges that Terry's has received this Down Payment in full, in the form initialed on the receipt: cash, card, or other. The Down Payment is subtracted from the Amount Financed on Page 7.

REFUND IF TERRY'S CANCELS: If Terry's cancels the sale before delivery for any reason — including an inability to verify application information or a delivery area restriction — the full Down Payment is refunded to Buyer within 5 business days.

REFUND IF BUYER CANCELS BEFORE DELIVERY: If Buyer cancels before delivery, the Down Payment is refunded minus a restocking and handling charge of up to 10% of the Cash Price, because Terry's may have ordered, prepared, or scheduled the Merchandise specifically for this sale.

NO REFUND AFTER DELIVERY: After the Merchandise is delivered and accepted, the Down Payment is not refundable, except as required by Alabama law. Buyer's remedies after delivery are limited to those in this contract.

APPLYING THE DOWN PAYMENT: The Down Payment is applied first to taxes, then to the Cash Price, in that order, to compute the Amount Financed shown on Page 7.

Buyer is not required to make any payment other than the Down Payment before delivery, and no payment beyond the scheduled payments on Page 8 is due until its scheduled date.

Amount Financed (Cash Price + 8% Miscellaneous Fee + taxes + Protection Plan fee − Down Payment): $1,206.00

Add-On Interest at 21% of the Amount Financed (score-based tier rate plus the 10% in-house financing add-on): $253.26

TOTAL OF PAYMENTS (Amount Financed + Add-On Interest): $1,459.26

HOW ADD-ON INTEREST WORKS: The interest is computed once, at the start of the contract, as a percentage of the Amount Financed, and added on to the Amount Financed. The combined total is then divided into equal scheduled payments over the 12-month term.

APR DISCLOSURE: Because the interest is added on and paid in equal installments, the effective annual percentage rate (APR) under the federal Truth in Lending Act (15 U.S.C. § 1601 et seq.) is HIGHER than the add-on rate stated above. The exact APR for this transaction is disclosed on the separate TILA disclosure form provided with this contract. Ask the store manager if you have not received that form.

NO PREPAYMENT PENALTY: The finance charge is earned over the term, but Buyer may pay off early at any time with no penalty, and may use the 90-Day Same-As-Cash option on Page 9 to avoid interest entirely. Partial early payments reduce the balance and the payoff amount.

Buyer acknowledges that the financing was offered, and that the rate and Down Payment were set, based on Buyer's application information and the credit review Terry's performed — not on Buyer's race, color, religion, national origin, sex, marital status, or any other prohibited basis, in compliance with the Equal Credit Opportunity Act.

Payment Amount: $28.06 — Weekly

Number of Payments: 52 First Payment Due: 2026-09-16

Total of Payments: $1,459.26 Term: 12 months

WHERE AND HOW TO PAY: Payments may be made in person at any Terry's Furniture store during business hours, by phone during business hours, by mail (mailed payments count when received, not when mailed), or automatically using the credit card Buyer has placed on file for Auto Bill Pay. Terry's may offer additional payment channels and will honor receipts from any of them.

AUTO BILL PAY: If a card is on file, by signing this Agreement Buyer authorizes Terry's to charge that card for payments that are 7 or more days past due, after Terry's gives Buyer advance notice by phone, text, or email. Buyer may revoke this authorization in writing at any time (Page 20).

GRACE PERIOD: Buyer has a 5-day grace period after each due date. A payment made within the grace period is NOT late and no late charge accrues.

LATE CHARGE — $15.00 PER DAY: A late charge of FIFTEEN DOLLARS ($15.00) PER DAY accrues for each day a payment remains unpaid after the 5-day grace period ends, until the past-due amount (and accrued late charges) are paid in full. Example: a payment that goes unpaid for 15 days after its due date (10 days beyond the grace period) accrues $150.00 in late charges.

Late charges are liquidated damages for the cost of handling and collecting late payments — they are not additional interest, they do not extend any due date, and they do not reduce what Buyer owes. Nothing in this clause waives Terry's right to declare a default under Page 13.

APPLICATION OF PAYMENTS: Payments are applied first to late charges and returned-payment charges, then to the oldest payment due, then to the current payment. Overpayments beyond the current amount due are applied to the LAST payments in the schedule first (Page 25).

PAYMENT RECORDS: Buyer should keep receipts for every payment. Terry's records of payments are available to Buyer on request, and Buyer may request a written payment history at any time.

Buyer may pay the Same-As-Cash payoff — $1,206.00 — in full on or before 2026-12-08 (the "Same-As-Cash Period"), and Buyer will owe NO INTEREST and NO MISCELLANEOUS FEE at all. In that case Buyer pays only the Cash Price, taxes, Protection Plan fee and Extra Protection fees, and the Down Payment — nothing more.

The Same-As-Cash Period begins on the Contract Date on Page 1 and ends at close of business on the deadline date above. Payment must be RECEIVED by Terry's on or before that date — postmarks do not count.

After the Same-As-Cash Period ends, the full add-on interest shown on Page 7 remains part of the contract balance, and the payment schedule on Page 8 continues unchanged.

PARTIAL EARLY PAYMENTS: Making a large payment during the Same-As-Cash Period does not stop the remaining payment schedule unless Buyer pays the full Amount Financed. Partial early payments reduce the balance and the payoff amount, and there is no prepayment penalty (Page 25).

Terry's will remind Buyer of the Same-As-Cash deadline by phone, text, or email when possible, but Buyer is responsible for tracking the deadline whether or not a reminder arrives.

If Buyer pays off within the Same-As-Cash Period, Terry's releases its security interest and provides ownership documents within 10 business days (Page 25), and the Merchandise belongs to Buyer free and clear.

Protection Plan selected: Comfort Shield Plus (24 months)

Protection Plan Fee (added to the Amount Financed): $100.00

Extra Protections selected: None

WHAT THE PROTECTION PLAN IS: The Protection Plan is an OPTIONAL service plan covering accidental damage, stains, and mechanical failure of the Merchandise as described in the separate plan document provided at delivery. It is NOT insurance, NOT a warranty of the Merchandise's condition, NOT hazard coverage against fire, theft, flood, or storm (see Pages 17, 26, and 27), and has no cash surrender value.

WHAT THE EXTRA PROTECTIONS ARE: The optional add-ons selected above (such as Delivery & Setup Plus, Family Accident Protection, and Payment Relief) are OPTIONAL services whose terms are stated in the add-on documents provided at delivery. Their fees are financed with the Amount Financed.

NOT REQUIRED FOR FINANCING: Buying or declining the Protection Plan and every Extra Protection is NOT a condition of financing, approval, or delivery. Buyer's choice was made freely, and declining any or all of them does not affect the payment schedule except for the financed fee amounts shown above.

CANCELLING THE PLANS: Buyer may cancel the Protection Plan or any Extra Protection within the period stated in the plan document (at least the period required by law) for a refund of the unearned fee, which is applied to the account balance.

THE MERCHANDISE MUST REMAIN AT THE DELIVERY ADDRESS LISTED ON PAGE 2. This financing is approved in reliance on where Buyer lives and on Terry's ability to service, verify, and — if necessary — recover the Merchandise. This covenant is a core term of the Agreement, not a formality.

Buyer may NOT remove or keep the Merchandise at any other address — including a relative's or friend's house, a vacation home, a storage unit, a different apartment, or another city or state — without Terry's PRIOR WRITTEN CONSENT.

Buyer may NOT sell, rent, pawn, lend, give away, hide, abandon, or allow anyone else to take possession of the Merchandise while this Agreement is in effect. The Merchandise remains Terry's collateral until payoff (Page 12).

Terry's may verify the location and condition of the Merchandise during business hours on reasonable notice to Buyer, by phone, in person, or by any lawful means. A refused verification of the location of the Merchandise is itself a Default.

If the Merchandise is found at a different address, or in someone else's possession, or concealed, without Terry's prior written consent, that is an IMMEDIATE DEFAULT under Page 13, and Terry's may exercise its repossession remedies under Page 14 without further notice of the location breach.

IF BUYER MOVES: Buyer must notify Terry's BEFORE the move and request written consent to relocate the Merchandise to Buyer's new address. Terry's will not unreasonably withhold consent for an approved address change within its service area. Terry's consent, when given, will be in writing (including email) and Buyer must keep a copy.

Buyer initials this page separately to acknowledge that the location covenant was read, explained, and understood.

SECURITY INTEREST: Terry's Furniture retains legal title to and a purchase-money security interest in the Merchandise under the Alabama Uniform Commercial Code (Ala. Code Title 7, Article 9) until Buyer has paid the Total of Payments in full. This security interest secures payment of all amounts Buyer owes under this Agreement.

OWNERSHIP AT PAYOFF: Ownership of the Merchandise passes to Buyer automatically upon payment in full, free and clear of Terry's security interest. Within 10 business days after payoff Terry's releases its security interest and provides the ownership documents (Page 25).

USE OF THE MERCHANDISE: Until payoff, Buyer has the right to possess and use the Merchandise at the Delivery Address for normal household purposes. The Merchandise must not be used for commercial purposes (for example, in a rental unit, an office, a church, or a business) unless Terry's consents in writing.

NO OTHER LIENS: Buyer agrees to keep the Merchandise free of other liens and security interests, may not pledge or use it as collateral for any other loan, and must not remove, deface, cover, or destroy any ownership, serial, or identification labels Terry's places on the Merchandise.

INSURANCE UNTIL PAYOFF: Because Terry's retains title, Buyer should keep hazard insurance in force on the Merchandise until payoff (see Pages 26 and 27 for coverage options).

ACCESS: Nothing in this page authorizes Terry's to enter Buyer's home without permission or a court order — Terry's repossession rights are limited by Page 14's breach-of-peace rules.

Buyer is in DEFAULT if any of the following occurs:

(a) PAYMENT DEFAULT — any payment, together with accrued Late Charges, remains unpaid more than 5 days after the end of the grace period on Page 8; or

(b) LOCATION / TRANSFER DEFAULT — the Merchandise is moved, concealed, sold, rented, pawned, or possessed by someone else without Terry's prior written consent (Page 11); or

(c) FALSE INFORMATION — any information provided by Buyer on the application or in this contract was materially false when given; or

(d) INSOLVENCY — Buyer is subject to bankruptcy, insolvency, or receivership proceedings, or makes an assignment for the benefit of creditors; or

(e) REFUSED VERIFICATION — Buyer refuses to permit a lawful verification of the Merchandise's location under Page 11.

RIGHT TO CURE NOTICE: Before exercising repossession remedies for a PAYMENT default (clause (a)), Terry's will give Buyer written notice of default stating the amount required to cure and the deadline to cure, in the manner required by Alabama law and the federal FTC credit practices rules. Terry's is not required to send a second right-to-cure notice within the period allowed by law.

REINSTATEMENT: Buyer has the right to reinstate this Agreement by paying all past-due payments, accrued Late Charges, and reasonable costs of repossession and storage, so long as the Merchandise has not been sold. Reinstatement restores Buyer to the same position as before the default, except that repeated defaults may shorten future cure rights as the law allows.

EFFECT OF DEFAULT: Upon default that is not cured, the full remaining balance becomes immediately due and payable at Terry's option, and Terry's may exercise the repossession remedies described on Page 14.

WAIVER OF ACCELERATION: If Terry's does not accelerate the balance immediately, that choice is not a waiver — Terry's may accelerate a later default.

REPOSSESSION RIGHT: Upon a default that is not cured, Terry's may repossess the Merchandise, as permitted by the Alabama Uniform Commercial Code.

BREACH OF THE PEACE — WHAT TERRY'S MAY NOT DO: Terry's may enter Buyer's property to repossess, but may NOT breach the peace. Terry's may NOT force entry into a locked or closed home, may NOT cut a lock or chain, may NOT remove the Merchandise from another person's home or property without that person's consent or a court order, may NOT remove the Merchandise when Buyer or a household member present objects, and may NOT threaten, intimidate, or use force against any person. Any repossession Terry's performs will comply with these limits.

BUYER'S REDEMPTION RIGHT: Before Terry's sells or disposes of repossessed Merchandise, Buyer may redeem it by paying the full balance plus reasonable repossession and storage costs, and by paying any other amounts owed under this Agreement.

DISPOSITION OF THE MERCHANDISE: If the Merchandise is sold, the sale will be conducted in a commercially reasonable manner. If it is sold for more than the balance and costs, the surplus is returned to Buyer. If it is sold for less, Buyer remains responsible for the remaining balance and costs (the "deficiency"), plus continued daily Late Charges until paid.

DEFICIENCY AND SURPLUS NOTICE: Terry's will provide Buyer the notice of disposition and accounting that Alabama law requires, including the amount of any surplus or deficiency.

VOLUNTARY SURRENDER: A voluntary surrender of the Merchandise does not automatically cancel the debt unless Terry's agrees in writing. If Buyer wishes to surrender the Merchandise, ask Terry's for a written settlement agreement first — otherwise the balance and costs remain owed.

NO WAIVER OF REMEDIES: Terry's choice to use one remedy does not waive any other remedy available under this Agreement or Alabama law. Terry's remedies are cumulative.

GOVERNING LAW: This Agreement is governed by Alabama law, including the Alabama Mini-Code (Ala. Code § 5-19-1 et seq.) where applicable. Federal law that applies includes the Truth in Lending Act, the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), the Equal Credit Opportunity Act, the FTC Credit Practices Rule (16 C.F.R. Part 444), and the Federal Arbitration Act.

TERRY'S MAY NOT AND WILL NOT: threaten you, your family, or your property; use force or enter your home without permission or a court order; take the Merchandise from someone else's home; discuss your account with unauthorized people such as your employer, neighbors, or family; misrepresent the amount you owe or Terry's legal rights; use obscene or threatening language; contact you at unreasonable hours; or deposit a postdated check early. These prohibitions mirror the federal Fair Debt Collection Practices Act's standards, and Terry's holds itself to them even where they do not strictly apply to the original creditor.

TERRY'S MAY: contact you about your account at the phone numbers and address you provided; contact your employer only to verify employment, and stop if you tell us in writing that your employer forbids such calls; contact the references you listed only to locate you or verify information; report the account status to consumer reporting agencies; and verify the location of the Merchandise as described on Page 11.

WHAT WE ASK OF YOU: keep your contact information current (Page 24); communicate with us early if a payment will be late — Terry's would rather arrange things with you than lose you as a customer; and keep your account current so none of the default remedies on Pages 13 and 14 ever become necessary.

COMPLAINTS AND QUESTIONS about this account may be brought to any Terry's Furniture store, to the store manager that issued this contract, or in writing. You also have the right to contact the Alabama Attorney General's Consumer Protection Section regarding this transaction.

NO WAIVER OF LEGAL PROTECTIONS: No provision of this Agreement waives any right that Alabama or federal law says cannot be waived. If a clause conflicts with a non-waivable legal protection, the legal protection controls, and this contract does not waive it. THIS CONTRACT DOES NOT WAIVE ANY PROTECTION THE LAW GIVES YOU.

AS-IS BASIS: Except for any manufacturer warranty that passes through with the Merchandise and any Protection Plan Buyer purchased (Page 10), the Merchandise is sold AS-IS, and Terry's makes no other express or implied warranty of condition, merchantability, or fitness for a particular purpose, to the extent Alabama law permits disclaiming them.

NO ORAL PROMISES: There are no oral warranties, representations, or promises about the Merchandise that are not written in this contract or in the manufacturer warranty or Protection Plan documents. If a salesperson said something that is not in writing here, it is not part of this deal — ask that it be added in writing before you sign.

WHAT IS NOT COVERED: Normal wear and tear, misuse, abuse, accident, pet damage, insect or rodent damage, water or heat damage from misuse, commercial use, damage from moving the Merchandise yourself, and any damage occurring after delivery are not covered by Terry's.

FLOOR MODELS AND USED MERCHANDISE: Floor models and used Merchandise may show display wear; Buyer inspected and accepted the specific Merchandise delivered.

SERVICE CLAIMS: Manufacturer warranty claims are made through the manufacturer or Terry's service department as described on the warranty document. Protection Plan claims are made through the plan document provided at delivery. Terry's is glad to help route either kind of claim.

STATUTE OF LIMITATIONS ACKNOWLEDGMENT: To the extent the law allows, any action Buyer brings relating to the condition of the Merchandise must be brought within the period required by Alabama's statute of limitations.

RISK OF LOSS: After delivery, the risk of loss, theft, or damage to the Merchandise is on Buyer, even though title remains with Terry's until payoff. The Merchandise is Buyer's to use and care for from the moment it is delivered.

BALANCE SURVIVES LOSS: If the Merchandise is destroyed, stolen, or damaged through no fault of Terry's, the full contract balance remains owed. Insurance (Buyer's) is the way to protect against paying for Merchandise that no longer exists — that is why Terry's strongly encourages the coverage options on Page 27.

INSURANCE ENCOURAGED: Buyer is encouraged to carry renters or homeowners insurance covering the Merchandise against fire, theft, water damage, and other hazards. Page 27 explains the coverage options available and lets Buyer record an election for the file.

PROTECTION PLAN IS NOT INSURANCE: The Protection Plan, if purchased, covers service issues per its own terms (Page 10) — it is NOT hazard insurance and does not cancel or reduce this debt if the Merchandise is lost.

TITLE DOES NOT SHIFT RISK: Terry's retained title does not make Terry's an insurer of the Merchandise. Buyer bears the risk; Buyer reaps the benefit of ownership at payoff.

SALE OR INSURANCE PROCEEDS: Insurance proceeds, if any, may be applied to this account at Buyer's direction (Page 26). Whether or not Buyer carries insurance, the contract balance remains owed.

PLEASE READ THIS CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO A JURY TRIAL AND TO PARTICIPATE IN A CLASS ACTION.

BINDING INDIVIDUAL ARBITRATION: ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE MERCHANDISE, THE FINANCING, OR THE COLLECTION OF THIS ACCOUNT SHALL BE SETTLED BY BINDING INDIVIDUAL ARBITRATION, administered by a single arbitrator under the Federal Arbitration Act (9 U.S.C. § 1 et seq.) and the rules of the American Arbitration Association, in the county where the Merchandise was delivered. The arbitrator's award is enforceable in any court of competent jurisdiction.

CLASS ACTION WAIVER: BY AGREEING TO ARBITRATION, BUYER GIVES UP THE RIGHT TO A JURY TRIAL AND THE RIGHT TO PARTICIPATE IN ANY CLASS ACTION. Claims may not be arbitrated on a class-wide basis, and no arbitrator may consolidate claims of different buyers without all parties' written consent.

EXCEPTIONS: Either party may still bring an individual action in small claims court within that court's jurisdictional limit, and may seek injunctive relief in a court of law to protect its property interests in the Merchandise. This arbitration agreement does not apply to any dispute that the FAA or applicable law says cannot be arbitrated.

COSTS AND FEES: Each party bears its own attorney fees in arbitration unless the arbitrator awards fees under applicable law or contract; arbitration fees are allocated per the AAA rules and the FAA.

SEVERABILITY OF THIS CLAUSE: If any part of this arbitration agreement is found unenforceable, the remainder continues to apply. Arbitration awards are enforceable in any court of competent jurisdiction.

BUYER MAY OPT OUT: Buyer may opt out of this arbitration agreement by delivering written notice of opt-out to Terry's within 30 days after the Contract Date. An opt-out does not affect any other term of this contract.

BUYER AGREES TO SIGN THIS CONTRACT ELECTRONICALLY. Buyer's initials at the bottom of each key page and Buyer's signature on the signature page — drawn on the signature pad and/or typed as Buyer's full legal name — have the same legal effect as a handwritten signature, under the federal E-SIGN Act (15 U.S.C. § 7001) and applicable Alabama law.

ELECTRONIC RECORDS CONSENT: Buyer consents to receive this contract and related disclosures — payment reminders, notices of default, payoff quotes, account changes — electronically, including by email and text message. Buyer may request a paper copy at any time at no charge, and one will be provided.

HOW TO WITHDRAW CONSENT: Buyer may withdraw consent to electronic records by notifying Terry's in writing. Withdrawal does not affect the validity of anything already signed electronically.

COPY RETENTION: A signed copy of this contract is retained on the customer's account and can be re-printed or re-emailed on request at any time during the life of the account and thereafter as the law requires.

SIGNATURE ATTRIBUTION: The signature and initials captured on this account are uniquely attributable to Buyer, and were applied with Buyer's knowledge and intent to sign. Buyer should not share the account credentials or signing link with anyone else.

WET SIGNATURE EQUIVALENT: If Buyer instead signs a paper copy of this contract in the store ("print and sign in-house"), the paper copy is the original and this electronic copy is retained for the file; both carry the same terms.

CREDIT AUTHORIZATION: Buyer authorizes Terry's Furniture to obtain consumer credit reports (soft inquiries) about Buyer now and during the life of this account, as permitted by the Fair Credit Reporting Act. Buyer authorizes Terry's to report the payment history of this account — including late payments and defaults — to consumer reporting agencies.

AUTO BILL PAY: If a card is on file, Buyer authorizes Terry's to charge that card for payments that are 7 or more days past due, after advance notice (Page 8). Buyer may revoke this authorization in writing at any time; revocation does not affect charges already made.

CONTACT PERMISSION: Buyer authorizes Terry's and its agents to call or text the numbers provided regarding this account — payment reminders, delivery, and service — including with automated dialing equipment. Standard message rates apply. Consent is not a condition of purchase and may be revoked in writing, subject to Terry's right to send legally required notices.

REFERENCES & EMPLOYER: Buyer authorizes Terry's to contact the listed employer and references for verification and location purposes, within the limits described on Page 15.

PRIVACY: Terry's uses Buyer's personal information to service this account, as required by law, and for no other purpose without Buyer's consent. Terry's does not sell Buyer's personal information.

NO ADDITIONAL AUTHORIZATIONS: Except as expressly stated in this contract, Buyer grants no other authorizations, and no other charges to Buyer's card or account are permitted without Buyer's specific consent.

The credit application completed by Buyer — including Buyer's address history, landlord information, employment, income, and personal references — is incorporated into this Agreement by reference as if fully written here.

EMPLOYMENT: Buyer works at Sample Employer as a Sample Job Title. Employer address: —. Employer phone: —. Buyer authorizes Terry's to verify employment and income by any lawful means, including contacting the employer at the number listed.

RESIDENCE & LANDLORD: Buyer lives at the Delivery Address on Page 2. Buyer authorizes Terry's to verify residence with the landlord and with proof-of-address documents.

PERSONAL REFERENCES — the references listed on the application, which Buyer authorizes Terry's to contact to locate Buyer or verify information, are:

None listed.

CERTIFICATION OF ACCURACY: Buyer certifies that every answer on the credit application is true, complete, and accurate to the best of Buyer's knowledge, and that Terry's Furniture relied on that information in approving this financing.

ONGOING VERIFICATION: Buyer authorizes Terry's Furniture and its agents to verify Buyer's identity, employment, income, residence, and references — now and at any time during the life of this account — by any lawful means.

FALSE INFORMATION IS A DEFAULT: If Terry's later discovers that any information provided was materially false, that discovery is a DEFAULT under Page 13, and Terry's may exercise every remedy described in this contract.

KEEPING INFORMATION CURRENT: Buyer must keep Terry's informed of any change to Buyer's name, address, phone number, or employer, as described on Page 24, so Buyer keeps receiving important notices about this account.

No co-applicant signed this contract. The account is in Buyer's name alone (see Page 22).

JOINT AND SEVERAL LIABILITY: If a co-applicant signed the credit application for this account, that co-applicant signs this contract as a co-buyer and is JOINTLY AND SEVERALLY liable with Buyer for every obligation in it — meaning Terry's may collect the entire balance, and perform every remedy in this contract, against either signer alone.

CO-APPLICANT RIGHTS: A co-applicant has the same rights and benefits under this contract as Buyer, including the right to receive notices, to request account information, and to cure a default.

NO OTHER OBLIGORS: If no co-applicant signed, Buyer agrees the account is in Buyer's name alone and no other person is authorized to make changes, sign, or receive information about this account.

ADDING OR CHANGING OBLIGORS: Adding, removing, or substituting an obligor on this account requires a new written agreement signed by all parties and by Terry's Furniture. Oral agreements to add a signer are not valid.

NOTICE TO CO-APPLICANT: A co-applicant should be aware that this account will be reported on the co-applicant's credit history, and that the co-applicant's assets may be pursued for the full balance if the account goes unpaid.

LATE CHARGE — $15.00 PER DAY: A late charge of FIFTEEN DOLLARS ($15.00) PER DAY accrues for each day a payment remains unpaid more than 5 days after its due date (the grace period on Page 8), until the past-due amount and accrued late charges are paid in full. Example: a payment that remains unpaid for 15 days after its due date (10 days beyond grace) accrues $150.00 in late charges.

HOW LATE CHARGES ARE BILLED: Late charges appear on the account and are collected with the next payment or payoff. Late charges are additional compensation for the cost of handling and servicing late accounts — they are not extra interest, they do not extend any due date, and they do not reduce the amounts Buyer owes.

CAP ON LATE CHARGES: Late charges stop accruing on a past-due payment when that payment is paid. A payment is considered paid when the late charges accrued on it are also paid (Page 8, Application of Payments).

RETURNED PAYMENTS: If a check or electronic payment is returned unpaid, a $25.00 returned-payment charge applies plus any fee allowed by Alabama law. A returned payment does not count as a payment until it is redeemed in full, the payment it was applied to becomes immediately due, and late charges may accrue on it under this page.

CERTIFIED FUNDS: If more than one payment is returned, Terry's may require all future payments to be made in cash, money order, or certified funds.

COLLECTION COSTS: Upon default, Buyer is responsible for the reasonable costs of collection that Alabama law allows — including the costs of locating the Merchandise, repossession, storage, repair, and sale of the Merchandise, and court costs where permitted.

CONTACT BEFORE IT GETS HERE: If Buyer knows a payment will be late, calling Terry's BEFORE the grace period ends is always the better path — a promise-to-pay arrangement in writing can often avoid late charges entirely.

CONTACT INFORMATION DUTY: Buyer agrees to keep a current mailing address, phone number, and email address on file with Terry's Furniture and to notify Terry's in writing within 5 days of any change. Notices mailed to the last address on file are considered delivered to Buyer even if Buyer has moved.

ACCOUNT COMMUNICATIONS: Terry's and its agents may contact Buyer by phone, text message, or email at the numbers and addresses provided — including the numbers provided by references and on the credit application — regarding this account, payment reminders, delivery, and service.

HOURS OF CONTACT: Terry's contacts customers between 8:00 a.m. and 9:00 p.m. local time at Buyer's location.

CONDUCT: Terry's does not threaten, harass, or misrepresent; those protections are described fully on Page 15.

THIRD PARTIES: Terry's does not discuss Buyer's debt with unauthorized people. Terry's may ask another person only for Buyer's contact or location information, and may not reveal that Buyer owes a debt.

WRITTEN REQUESTS: Buyer may write to Terry's to request that communications be limited, or that a specific number or address not be used. Terry's honors such requests as the law requires, while retaining the right to send legally required notices — including right-to-cure notices under Page 13 — to Buyer's address of record.

EMAIL DELIVERY: Buyer's email address of record is: —. Buyer should add Terry's to their safe-sender list so important account notices are not filtered as spam.

BUYER MAY PREPAY AT ANY TIME. There is NO prepayment penalty and no minimum prepayment amount (see also the Same-As-Cash option on Page 9).

PAYOFF QUOTES: Payoff quotes are available at any Terry's Furniture store or by phone, and include the balance plus any accrued Late Charges as of the payoff date. A payoff quote is honored for the period stated on it (at least 10 days).

HOW EXTRA PAYMENTS APPLY: Unless Buyer directs otherwise in writing, any amount paid beyond the payment currently due is applied to the LAST payments in the schedule first — shortening the term of the contract rather than lowering the payment amount.

AFTER PAYOFF: Within 10 business days after payoff, Terry's releases its security interest, provides the ownership documents, and refunds any credit balance owed to Buyer.

REFUNDS OF PLAN FEES: Any unearned Protection Plan or Extra Protection fees after cancellation are refunded or credited to the account per Page 10.

OVERPAYMENTS: If Buyer accidentally overpays, Terry's refunds the overpayment within 10 business days of discovery or applies it as Buyer directs.

Paying off early improves Buyer's payment history on this account and may improve Buyer's standing for future Terry's Furniture financing.

INSURANCE STRONGLY ENCOURAGED: The Merchandise is Buyer's responsibility once delivered (Page 17). Terry's STRONGLY encourages Buyer to carry renters or homeowners insurance that covers the Merchandise against fire, theft, water damage, and other hazards. Page 27 describes the coverage options Buyer may choose.

PROOF OF COVERAGE: Upon Terry's reasonable request, Buyer agrees to provide proof that the Merchandise is insured against loss — a declarations page, policy card, or written confirmation from Buyer's insurer. Terry's will not request this more than reasonably needed.

NOTICE OF LOSS: If the Merchandise is lost, stolen, or destroyed, Buyer must notify Terry's within 10 days and provide any insurance or police report available.

INSURANCE PROCEEDS: Insurance proceeds, if any, may be applied to this account at Buyer's direction — to pay the account down or off, or to replace the Merchandise through a new purchase. Whether or not Buyer carries insurance, the contract balance remains owed as described on Page 17.

NO TERRY'S INSURANCE POLICY: Terry's is not Buyer's insurer. Terry's does not sell hazard insurance, and no Terry's employee may tell Buyer that the debt is forgiven if the Merchandise is lost — it is not.

REPLACEMENT AFTER LOSS: If a hazard destroys the Merchandise and Buyer's insurance replaces it, the replacement Merchandise becomes Terry's collateral under this Agreement to the same extent as the original.

Buyer may protect the Merchandise in any of the following ways. Buyer's election below is recorded for the file; an election is not a condition of financing, but electing NO coverage means Buyer bears the full risk described on Page 17.

OPTION A — RENTERS OR HOMEOWNERS INSURANCE (RECOMMENDED): Buyer adds the Merchandise to an existing renters or homeowners policy (or buys one). The policy should cover the Merchandise against FIRE, LIGHTNING, WINDSTORM, SMOKE, WATER DAMAGE, THEFT, VANDALISM, and FALLING OBJECTS, at replacement cost if available. Most renters policies cost a modest monthly amount and also cover Buyer's other belongings. Buyer should tell the insurer that financed furniture is on the policy and provide proof of coverage to Terry's on request (Page 26).

OPTION B — SCHEDULED PERSONAL PROPERTY ENDORSEMENT ("FLOATER"): For high-value items, Buyer's insurer can schedule the specific Merchandise on the policy with an itemized, all-risk endorsement, including accidental damage some standard policies exclude. This costs more than Option A but gives the broadest coverage for a financed furniture set.

OPTION C — BUYER DECLINES INSURANCE (SELF-INSURED): Buyer acknowledges Buyer has NO hazard coverage on the Merchandise, that the full contract balance remains owed even if the Merchandise is destroyed, stolen, or damaged (Page 17), and that Terry's is not liable for the loss. This election is Buyer's free choice.

THE PROTECTION PLAN IS NOT ONE OF THESE OPTIONS: The Comfort Shield Protection Plan and the Extra Protections on Page 10 cover service, stains, and accidents only — they are NOT hazard insurance and never replace Options A, B, or C.

ELECTION: Buyer's insurance election recorded at signing: ☐ Option A (renters/homeowners) ☐ Option B (scheduled endorsement) ☐ Option C (declines insurance). Buyer may change this election at any time by notifying Terry's in writing.

IF BUYER LATER BUYS COVERAGE: Provide proof of coverage to Terry's and Terry's will note it on the account. If Buyer later drops coverage, the balance remains owed regardless — the duty to pay does not depend on the Merchandise surviving a hazard.

TERRY'S MAY ASSIGN: Terry's Furniture may sell, assign, or transfer this contract, the payments, and its security interest in the Merchandise at any time. An assignee takes Terry's rights under this contract, and Buyer will be notified of any assignment. Buyer's obligations are owed to the assignee from the assignment date.

PAYMENTS AFTER ASSIGNMENT: Terry's will tell Buyer where to send payments after an assignment. Payments properly sent to the old address before notice are credited as if received.

BUYER MAY NOT TRANSFER: Buyer may not assign this Agreement, delegate its duties, or transfer possession of the Merchandise except as described on Pages 11 and 12.

BINDING EFFECT: This Agreement binds Buyer and Buyer's heirs, executors, administrators, and permitted assigns, and benefits Terry's Furniture, its successors, and assigns.

CHANGE OF BUSINESS OWNERSHIP: If Terry's is sold or merges, the new owner steps into Terry's place under this contract with the same rights and obligations — including every consumer protection on Page 15.

SURVIVAL: The obligations that by their nature should survive payoff (including arbitration on Page 18 and any then-unpaid deficiency) survive payment in full.

ENTIRE AGREEMENT: This contract, the credit application, the delivery ticket, and any Protection Plan or Extra Protection documents are the ENTIRE AGREEMENT between Buyer and Terry's Furniture. It supersedes all prior discussions, advertisements, and representations. It may be changed only in a writing signed by both parties.

SEVERABILITY: If any part of this Agreement is held invalid or unenforceable, the rest remains in effect, and the invalid part is replaced by the closest lawful term.

NO WAIVER BY CONDUCT: Waiver of one default is not a waiver of any other. Terry's failure to enforce any right strictly, or any delay in enforcing it, is not a waiver of that or any other right.

HEADINGS & INITIALS: The page headings are for convenience only. Buyer's initials on the key pages confirm that Buyer read and agreed to those pages; they do not limit this page's acknowledgment, which covers the entire contract.

ACKNOWLEDGMENT OF KEY PAGES: BY INITIALING THE KEY PAGES AND SIGNING BELOW — DRAWN OR TYPED — YOU ACKNOWLEDGE YOU HAVE READ, UNDERSTAND, AND AGREE TO THIS ENTIRE 29-PAGE CONTRACT, INCLUDING THE PAYMENT TERMS AND $15.00 PER DAY LATE CHARGE (PAGES 8 AND 23), THE MERCHANDISE LOCATION COVENANT (PAGE 11), THE ARBITRATION AGREEMENT AND CLASS ACTION WAIVER (PAGE 18), THE CREDIT APPLICATION VERIFICATION (PAGE 21), THE INSURANCE PROVISIONS AND COVERAGE ELECTION (PAGES 17, 26, AND 27), AND THE COMMUNICATIONS PROVISIONS (PAGE 24).

BUYER SIGNATURE: ______________________________ PRINTED NAME: Sample Customer DATE: September 12, 2026

CO-APPLICANT SIGNATURE (if any): ______________________________ PRINTED NAME: — DATE: September 12, 2026

TERRY'S FURNITURE REPRESENTATIVE: ______________________________ PRINTED NAME: ______________ DATE: ______________